Blue Owl Capital Inc.

Credit is approximately 51% of AUM, GP Strategic Capital represents 33% and real estate 16%. That said, Blue Owl still has a short track record as a combined entity--its formation occurred in May 2021. The stable outlook reflects S&P Global Ratings' expectation that over the next 18-24 months, the company will continue to meaningfully increase its FPAUM and earnings while sustaining leverage of 2.0x-3.0x. We could lower the ratings if leverage rises above 3.0x and the company's investment performance weakens or AUM growth stagnates. We do not anticipate raising the ratings during the next 18-24 months. Over the long term, we could raise the ratings if the company sustains leverage well below 2.0x while demonstrating significant growth in AUM and

...Blue Owl Capital Inc. has shown solid growth in assets under management (AUM) over the last two years. Year-to-date September 2023, AUM reached $157 billion, compared with $132 billion a year before. The main reasons for the increase were strong fundraising, market appreciation, change in debt, and acquisitions. Fee-paying AUM (FPAUM) increased to $97 billion from $84.1 billion over the same period. Credit is approximately 51% of AUM, GP Strategic Capital represents 33% and real estate 16%. That said, Blue Owl still has a short track record as a combined entity--its formation occurred in May 2021. Permanent capital, which accounts for a significant portion of fee income, is a good indicator of future cash flow generation. As of Sept. 30, 2023, Blue Owl's AUM from permanent capital totaled $123 billion, or around 78% of total AUM. In the nine months ended Sept. 30, 2023, 92% of management fees are from permanent capital vehicles and 6% from long-dated funds. Our inclusion of Blue Owl's tax...

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